Jamie Paterson had equalised in the first half but it proved in vain and second-placed Burnley now have an 11-point advantage over Forest.
Davies said: "The fact that we are still in the top six with so many players out tells you how well the team has done so far this season.
"We are now relying on our under-21 coach, in Jonathan Greening, to play in midfield, tells you exactly what our position is.
"There are 13 games to go and I have said all along there will be twists and turns. Until it is mathematically impossible, then anything is possible. We will continue to be positive.
"I have told the players to keep a spring in their step. To be in the top six when we have so many players out - that is why we have to be very positive."
- Sports & Recreation
- American Football
- Jonathan Greening